U.S. Lawmakers Call for a Permanent Ban on a Central Bank Digital Currency
Washington, D.C., March 8 2026 — A bipartisan coalition of members of Congress is urging a complete prohibition on the Federal Reserve’s ability to launch a Central Bank Digital Currency (CBDC) in the United States. In a letter addressed to House Speaker Mike Johnson and Senate Majority Leader John Thune, Rep. Michael Cloud, along with 28 other legislators, argued that the pending amendment to the Federal Reserve Act, which would delay any CBDC issuance until 2031, falls short of what they consider a necessary safeguard for American civil liberties.
Legislative context
The amendment in question is part of the 300‑page “21st Century ROAD to Housing Act” (H.R. 6644), introduced by the Senate Committee on Banking, Housing, and Urban Affairs. The provision would prohibit the Federal Reserve from rolling out a digital currency before 2031, effectively buying the nation a decade of “time to evaluate” the technology.
Lawmakers opposing the measure contend that a temporary moratorium does not address the core concerns they raise—namely, the potential for unconstitutional financial surveillance and the concentration of monetary power in an unelected agency. They cite the “Anti‑CBDC Surveillance State Act” (H.R. 1919), first introduced in June 2025 by Rep. Tom Emmer, as a stronger, more definitive framework. Though H.R. 1919 cleared the House in July 2025, it has yet to secure Senate approval.
In addition, Senator Mike Lee’s “No CBDC Act” (S. 464), introduced in early 2025, sought to bar both the Federal Reserve and the Treasury from ever creating a digital dollar. That bill stalled in committee and has not advanced further.
Arguments presented in the letter
- Permanent prohibition: The signatories contend that any CBDC would inherently erode financial privacy and give the Federal Reserve unprecedented oversight over individual transactions.
- Surveillance risk: They warn that a digital dollar could enable real‑time tracking of spending, contravening constitutional protections.
- Policy dilution: The amendment to H.R. 6644 is described as a “watered‑down” version of H.R. 1919, lacking the robust language needed to prevent the Fed from even studying a CBDC.
- Timing urgency: The letter emphasizes that the issue should be settled now, before any further research or pilot programs could create a path toward implementation.
Potential impact on the crypto ecosystem
If a permanent ban were enacted, it would cement the United States’ stance as a market that favors decentralized digital assets over a state‑issued alternative. The move could:
- Reinforce the appeal of cryptocurrencies for users seeking financial privacy and autonomy.
- Signal regulatory certainty for crypto businesses, reducing the risk that a government‑backed digital dollar might compete directly with existing tokens.
- Influence global policy as other jurisdictions watch the U.S. approach to digital fiat and adjust their own CBDC strategies accordingly.
Conversely, a failure to pass a lasting prohibition may keep the door open for a digital dollar, which could reshape payment infrastructure, introduce new compliance requirements for crypto platforms, and alter the competitive landscape between centralized and decentralized finance.
Key takeaways
- A coalition of 29 lawmakers is pushing for a permanent ban on any U.S. CBDC, arguing that a temporary delay until 2031 is insufficient.
- The proposed amendment is part of H.R. 6644, the “21st Century ROAD to Housing Act,” but critics say it lacks the strong safeguards of the earlier “Anti‑CBDC Surveillance State Act” (H.R. 1919).
- Related legislation — the No CBDC Act (S. 464) introduced by Sen. Mike Lee — has stalled, leaving the fate of a permanent prohibition uncertain.
- Implications for the cryptocurrency sector include potential reinforcement of the demand for privacy‑focused digital assets and clearer regulatory expectations if a ban passes.
- The debate reflects broader concerns about financial surveillance, the balance of power between elected officials and the Federal Reserve, and the future of digital payments in the United States.
As the discussion moves forward, stakeholders across the financial and technology spectrum will be watching closely to see whether Congress will adopt a lasting safeguard against a federal digital currency or allow the deliberations to continue.
Source: https://cointelegraph.com/news/united-states-cbdc-federal-reserve-lawmakers-dispute-letter?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
